June 9th, 2008 11:02 AM by Lehel Szucs
This is a piece of an article we recently read and wanted to share with our readers. After you've read this let us know what you think.......
Recently, I attended a 2008 economic update by the Southeast Valley Women's Council of Realtors. The speaker was Wayne Stutzer. He told the audience how their clients could obtain a fantastic real estate bargain by simply getting a 'haircut.'
The crowd was mesmerized as he shared his secret. He explained that the problem was that most buyers need to sell first before buying. The deeply discounted deals were waiting for the savvy sellers. His solution was for the sellers to take a 10% 'haircut.' In other words, cut their price so they would receive an offer and become buyers.
When the sellers entered escrow and became buyers, the idea was to then ask for a deeper discount than they offered their buyers. Imagine that! Get a 10% 'haircut' and then obtain a 20% discount when you buy. Most sellers today are reluctant to 'prime the pump' with the proper price. And, that's why their for sale sign is gathering cobwebs.
Many expired listings find themselves admitting they have been 'chasing the market' as it drifted downward. This practice is as rewarding as rushing to the airport at the last minute only to find that the plane has left the tarmac. The old Turkish proverb says, "No matter how long you have been going down the wrong road, when you figure it out, turn around."
My friend, Bob, has a teenage son Adam. He is a very stubborn boy. That young man needs his hair trimmed. But, Adam is reluctant to listen to his Realtor father, mother, or relatives. Some day Adam won't be able to find a job because of his long locks and argumentative attitude.
Periodically it's a good idea to cut your hair, cut your losses, and cut your price.
The only thing standing between most sellers and a sold sign is a pricing 'haircut.'